Property tax increases are always a hot topic with taxpayers, as they should be – you want to know where your tax dollars are being spent.
With 2017 just a month away, Town of Huntsville staff and Town Council are putting the finishing touches on the budget for next year – the final draft of the budget will be reviewed by council at a special meeting on December 8.
What can you expect to see this year?
Three main areas are contributing to this year’s overall tax increase, the amount of which will be up for final deliberation by council at the special meeting: a provincially mandated capital asset plan, transportation infrastructure – roads, bridges and culverts – and new initiatives.
A big part of our budget is maintaining our assets, like roads, bridges, culverts, facilities, parks and cemeteries at service levels they are now.
Julia McKenzie, Manager of Finance for the Town of Huntsville
“Right now we aren’t funding those asset plans at 100 per cent – it’s closer to 50 per cent for many of them – so we have a plan to gradually increase them year over year to avoid a big tax hike and and in the future be at a level where we are adequately funding to sustain our current assets,” says McKenzie.
There are also legislative changes that the Town is required to comply with that will increase the budget. One of those is new working-at-heights legislation that requires the purchase of harnesses and the installation of railings and ladders on the roofs of Town-owned buildings. Ensuring staff are at appropriate pay bands, minimum wage increases, and WSIB increases will also contribute to the 2017 budget.
Transportation infrastructure consumes a big portion of the Town’s annual budget, too – Huntsville has a lot of roads, bridges and culverts that need to be maintained – and an additional $400,000 has been added to the draft budget for 2017 to address some of the backlog.
Finally, many new initiatives were up for consideration for next year. “We had over a million dollars in new initiatives come forward,” says McKenzie. “We’re looking at what we can include in this year’s budget and how to fund those, but they will have an impact if we are adding them to our existing budget.” Remediation of the CN Train Station is a prime example, and a big-ticket one as well.
In short, the 2017 budget will be primarily focused on planning for the future while maintaining existing services and assets. While no one likes to see their taxes increase, a survey done by the town last year indicated that most of the respondents would support an increase if it meant maintaining or enhancing existing services.
Council saw an early version of the budget at its last General Committee meeting and highlighted the need for efficiencies to ensure that whatever tax levy is brought forward on December 8, it will be the best possible percentage they can make it.
For an overview of how the Town of Huntsville uses municipal tax dollars (based on the 2015 budget), read the Your Municipal Tax Dollars at Work report.
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